Note: Written and posted on the fly. Please excuse grammer/spelling errors and shorthand.
Can Kaesong be included in an FTA?
Kessenger - It is unprecedented and there are “other problems”, then again this FTA is unprecedented.
Will an FTA help “the Hub” plan? Help stabilize Dollar/won exchange rate?
Han - Will help, especially the changes the FTA will make in regards to finance rules and services. Not sure on the currency issue, to many issues.
What are the effects of the politics in the US/ROK on the FTA? (my question, however the moderator added the ROK politics aspect, and later admited to me alone he “edited” it. I added some parts if Kaesong would get pass the Senate. They never made it. As I said before the only awnser to that is “over Sam Brownback’s cold dead body…literaly”.)
Card - Extending “Fast Track” very hard (note, I saw Card breakout in a wide smile when it was asked about they way some Korea negoitators talk as if “fast track” will be extended easy). Immigration debate has made it difficult to extend “Fast Track” (odd). Devicive issue, however not in a partisan way.
Han - Negotiations are not being conducted in public
Are FTA’s (ie bilateral vs. multilateral) conducive to global trade?
Kessenger - Trade liberalization is essential to growth and provides great strategic value.
Ahn - Hopes the US renews Doha Round (What? Its our sole responsiblity?)
Card - Every US President supported Free Trade. Frustrated by “hold” of Doha round (I would say “collapes”). US supports multilateral, region, and bilateral agreements, will do anything. Hope sucessful US/ROK talks will build into sucess for resumption of Doha.
What can you say about problems investment funds have in Korea?
Kessenger - Wait till luncheon. However rule of law critical, everyone suprised by Korea’s xenophobic reaction.
Han - Korea is following the law, and will be transparent (pissed at Kessenger)
Ahn - (also pissed at Kessenger) Korea is getting lots of stock investment so we are making progress. Futher we will follow OECD recomendations on in/out flows of capital.
Kessenger - In the 70s OECD/World Bank recomended that ROK be developed like Bangedesh (with a very closed economy), Korea chose not to, and look at the benefits. (translation: The OECD and its standards you want so much can kiss my ass)
5 Comments
Ted Kassinger is a keeper. Here is a brief bio:
http://www.ogc.doc.gov/ogcwebsi.nsf/pages/TK
LOL
More interesting reactions from Han:
1. In observing that the FTA will have a positive effect on Korea’s Hub ambitions by effectively forcing the implementation of the necessary changes in the Korean regulatory framework, Han implicitly has acknowledged that the Hub is effectively a dead letter as a domestic initiative.
It’s also depressingly reiterative of the usual pattern of the reformist element in Korea to let outside interests do the heavy lifting on reform initiatives, thus compounding the sense of societal resentment that makes each new round of reform even more difficult.
2. I wished I was there to launch a follow-up question or questions regarding the “rule of law” issue regarding the treatment of foreign funds. In particular, it is preposterous to assert that Korea is transparently applying the law in these cases when the first Korean response to the sales announcements was to unleash a barrage of tax investigations and charges about tax evasion that were specious on their face considering the provisions of Korea’s tax treaties. It was only when it was discovered that such an approach wouldn’t fly that the prosecution started to look into allegations that the original sales of interests to e.g., Lonestar, had been rigged, possibly with Lonestar’s own connivance. After having effectively been smeared by the prosecution in the press, Lonestar appears effectively to have been exonerated by the prosecutions failure to find any evidence and indict, but the case drags on - and impedes consummation of Lonestar’s exit sale - because the prosecution won’t actually close the investigation. Justice delayed is justice denied. In this instance, the prosecution’s attitude seems to be to punish Lonestar anyway to the extent that its delaying closing will garner Lonestar a lower price for the asset than if the deal were priced today, after another year of improving earnings at KEB. BTW, what’s going on with the negotiation between L and Kookmin over the extension/repricing of the closing? It was the lead business news the week before last but has disappeared.
If that’s transparency, I’ll bet Lonestar would prefer a smoke-clogged cloakroom.
Is this just pique on Han’s part about calling a spade a spade and the Korean’s consequently losing face (and his job as chief tout being made more difficult), or are we seeing his true colors?
Sperwer> To be fair we have to remember that Han is not out of politics, as might be said for Card. He cannot be the “senior statesman” because of it. He has to give the party line or write off his entire career.
DM: I agree with your general assessment of Han’s position. However, given the lay of the land, one might think it more politically astute to demur from sticking to the URI party hook, line and SINKER and position oneself for service under the soon to be GNP ascendant. One might raise an eyebrow about such lack of loyalty, but that doesn’t seem to have been much of an impediment to other Korean politicos. Then, of course, there’s the issue whether the plutocrats behind the GNP are themselves really interested in a FREE trade deal. Maybe it wouldn’t be such a difficult segue for Han after all.